J.P. Simard 995-1327
November 12, 1980
Dear Sirs:
Re: Subsection 184(3) I.T.A. Regulation 2106
This is in reply to your letter dated September 25, 1980 requesting clarification of the application of Regulation 2106 in the case of an election filed under subsection 184(3) by a predecessor corporation prior to its amalgamation.
We have reviewed our policy as expressed in our letter 5-1785 dated September 17, 1980. We are now of the opinion that an amalgamated corporation (within the meaning of "new corporation" given in subsection 87(1) of the Act) can elect on behalf of any of its predecessor corporations pursuant to subsection 184(3) in respect of a dividend payable by the said predecessor corporation, when a tax under Part III is payable in respect of such dividend.
We are, nevertheless, of the opinion that an election filed by the predecessor corporation, prior to its amalgamation, on the basis of all information available at that time and subsequently updated with additional information pertaining to the assessment within 90 days of the day of mailing of the notice of assessment in respect of Part III tax, would be acceptable.
We trust that this will be of assistance to you.
Yours truly,
for Director Corporate Rulings Division Corporate Rulings Directorate Legislation, Branch